The Nikkei share average dropped 0.5 percent to 22,720.88 at the midday break, after opening a tad higher.

The index has fallen around 7 percent since its 27-year peak hit on Oct. 2, as concerns around rising debt yields and worries about the slowing Chinese economy gripped equity markets world-wide.

On Wednesday, the Fed’s minutes for its September meeting showed all policy makers agreed to raise key interest rates for a third time in 2018 with many open to further hikes.

“Investors are reminded about the reasons for last week’s selling and they’ve become guarded against those negative risks again,” said Shogo Maekawa, a global market strategist at JPMorgan Asset Management. “Caution against rising yields will likely cap the Japanese market’s upside for a while.”

Machinery makers were battered after economic data showed Japan’s exports unexpectedly fell in September from a year earlier, the first decline in 22 months.